>> altria group. i've been in, i've been out, thinking about getting back in. i think that hunt for dividends and yields are going to be back. >> great weekend for everyone out there. today at 5:00 p.m. eastern, ""money in motion,"" options action. follow me on twitte twitter @scottwapnercnbc. "power lunch" starts right now. welcome, everybody. take a look at gold. it is off the highs of the trading session. but it is still up $9 on the day, and 13% in three months. the bulls are thrilled today because of comments from big time hedge fund manager ray dalio saying own gold. it is almost a modern day gold rush. it is a big day for apple, it is a big day for apple users, it is a big day for apple's stock. the iphone 5 was released and customers are crowding those apple stores all over the world. also today, we focus on cyber terrorism, why many

intelligence officials are saying watch out -- iran may be hacking your bank account. that story straight ahead. but first, to simon in for tyler today at the nyse. >> it is certainly a big day for many people in the gold market as the head of hedge fund giant bridge water associates tells cnbc, "i think gold should be a portion of everyone's portfolio to some degree because it diversifies the portfolio. it is the alternative money. we have a situation now, he continues, where we have too much debt and too much debt leads to printing money. gold's clearly moving on those comments. sharon epperson has the very latest trade heading into the weekend. >> the momentum and the trading action here on the commodities floor definitely here in the gold pits today. we did see gold prices hit $1,790 an ounce, the highest price since february. we have pulled back a bit and some other commodities as well but we are looking at near highs of the year. this run that we've seen in gold

is mirrored by what we saw in silver. silver though actually pulling back first and some traders say some of the rebalancing that may be going on in the s&p may have impacted other asset classes. still, big profits in these metals over the course of the week. we'll have more on the metal's close at 4:30. jeff kilburg has been here all week. first, do you agree with mr. dalio? >> absolutely. it's going to $1,934. that's the technical. i like gld. the miners gdxj allows you to get that movement up to the up side. we'll see $2,000 here at the end of the year. >> is there a direct correlation between the miners and the price of gold? in the oil market it is not quite that way. >> that's why i like the miner play. they have lagged the price of gold. if you look it the 10-year chart there's discrepancy there.

>> all right, we'll see you in a little bit. on the floor of the new york stock exchange we are bracing for an explosion of volume. managing director of icap is here. >> it is the quadruple expiration but today there is also an s&p rebalancing. today volume 609 million. we'll probably be over a billion shares today based on the trade that will happen in the final moment of the day. >> will it matter for market direction? >> the market will probably end on a plus note. i don't think it will do much from where it is right now, locked in this $1,450, $1,460 range. i think it is going to bounce off the $1,450 next week. >> heading into earnings season, seems like a lot of companies are warning. >> they warned at the end of last quarter. they told us going out six months that it didn't look good. the fact is the market has continued to move higher even in the face of that so you have to believe that some of that is really priced in.

unless some company comes out and misses it completely, i think the market is going to continue to move higher only because the fed's there with the checkbook, you've got big asset managers that are playing catch-up. >> kenny, see you later in the show. the corporate story of the day -- has to be apple. its iphone 5 now officially on sale and people around the world were literally lined up around the lock. right now shares of apple are up $6 but they're up 70% in a year. jon fortt is in palo alto with the latest. excitement, jon, certainly but also a little bit of controversy surrounding the device. >> reporter: definitely that. and i think the task at this point, the store's been open for a while -- lines short now -- is to try to celebrate the hype from the reality and try to figure out how much of a force this iphone 5 will be. the lines were long this morning. about as long as we've seen. though definitely not the 83% longer reported some places. that line's been taken care of. people have gotten pretty adept

at doing that. what i'm hearing from customers here, the adapters from the old doc to the new doc and the iphone 5 in very short supply. we won't get new shipments of those until october so customers here reporting that. also no extra cables for the iphone 5. customers might want some of those. they're not able to get them. the controversy of the day has to do with apple's maps. remember for the maps app in the phone they ditched google on the back end. am has its own maps. there are some problems well documented online. it is kind of like the antenna gate from today. two years ago the iphone 4, people complained about dropped calls when they held the phone a certain way. this time the issue is maps. we'll have to see how much legs that has. we wouldn't see that today. people who lined up earlier this week or even earlier today to get in are hard core fans, they will get the phone no matter what. the next wave a week or two out, are people still going to be as excited about the phone. we want tell that today but that's why i'll be tracking how

this controversy unfolds and how apple responds, guys. simon? >> jon, thank you. let's get a market flash with seema mody. >> sticking with the apple iphone 5 theme, all things digital. sprint is nearly sold out of the iphone 5 at many of its east coast spots. sprint is setting up a wait list then where customers can buy a $50 gift card and secure their spot when phones become available. take a look at shares of sprint getting a nice pop there, up 4.6%. to the airline sector now. one company not having a red letter day -- american airlines. more flights canceled as pilots at american protest a proposed new contract. phil has details in chicago. over to you. >> i think this is going to drag on for some time. there's really -- they're all boxed in, in part by bankruptcy law. look at the delays we've seen from american this week. this is according to flightstats.com. this time of year it should be up around 72%, 73%.

every day you can see they are way below the average in terms of on-time arrivals. what's going on? well, american flight delays have surged because pilots are filing maintenance notices. there's been a surge in these. these may be everything from a seat doesn't go all the way up, therefore the plane can't take off under faa rules until everything is fishgsxed in the plane. pilots say this is not an organized job action. because if it was, then they'd be in serious legal problem. they're picketing around the country. they do not want to accept a proposed contract that's going to be pretty much put upon them by the airline. who's stuck in the middle here? the passengers. those who are on canceled or delayed flights. they're getting fed up. >> by striking, delaying things, it's going about it the wrong way. >> if there's some trickery going on or things aren't quite as they should be, i have a big problem with that.

>> one thing to keep in mind, the reason we think this is going to go on for some time, bankruptcy court would have to approve any kind of a strike by the pilots. sue, that's unlikely to happen so as a result, the only action, if you will, if you're a pilot and you're not happy with management, is to make sure you are following every single detail letter of the law that comes from the faa in terms of taking off and that means filing these notices. >> indeed it does. phil, thank you very much. bank of america, jpmorgan chase not shedding a lot of light on this week's website problems. but intelligence experts are starting to talk and they're pointing the finger at iran. frank salufo heads the homeland security policy institute under president george w. bush. he also served as a special assistant there to the president on homeland security and he also testified on capitol hill yesterday that the iranian cyber terror threat was quickly growing. welcome to "power lunch," frank. nice to have you here. tell me your thoughts on this. do you believe that iran was behind the problems that

jpmorgan chase had earlier this week, as well as bank of america is it. >> i don't have any direct inside knowledge on the recent attacks, but would i be surprised? absolutely not. iran has been aggressively discussing its cyber warfare capabilities. they've been -- the good news is if you were to rack and stack the threat environment, they're not up there with russia or china. bad news, however, is what they lack in capability they more than make up for in intent. and they've basically been cyber saber rattling. they've gone so far as saying they're going to break teeth if they continue to see cyber attacks in their own country. >> talk to me about the implications of this. it appears as though from what i've been able to read that the united states is not as prepared as it should be for this type of cyber attack. >> we're not anywhere where we need to be in terms of a country with respect to preparedness and ultimately in response. the head of cyber command, general keith alexander, i think put it best when asked to

evaluate one to ten where the u.s. capability is. he put it at a three. obviously this is not a very good position to be in, especially when you have a number of actors out there. china and russia are very active in terms of computer network exploit. that's espionage in cyberspace. they're increasingly integrating cyber warfare into their military planning and war fighting capabilities. these are all issues we need to take very seriously and we need to enhance our own defensive capabilities as well as invest on the offensive side as we will never firewall our way out of the problem. initiative resides with the attacker. >> is it a money issue? is it an investment of money issue in the infrastructure to combat this kind of crime? or is there something else that the united states should be doing right now to try and get ahead of this? >> right now there was legislation that stalled on the hill to be able to share information between the government and the private sector. we need to remove any

impediments and obstacles to make that oa reality. there is a debate, policy without resources. you have a financial set of issues. but there is also do we take a regulatory approach or incentive based approach. i think we need to look at what the right level of carrots and sticks are. one thing to keep in mind that makes cyber unique and different -- the battlefield incorporates all of society and our private sector on the front lines in this war. >> frank, thank you very much. pleasure to talk to you. sue, let's go on the campaign trail. a new series of opinion polls means a new set of headaches for the romney campaign. these are polls taken in some key swing states and could point to a bigger problem down the road for the gop. john harwood is in washington with the latest. >> reporter: simon, you're exactly right. new nbc news/"wall street journal"/maris college polls. just like last week they showed president obama leading in swing

states ohio, florida and virginia, this week we're looking at wisconsin, colorado and the state of iowa. all three of those again show that president obama has established a clear lead over mitt romney. 50-45 in wisconsin, 50-45 in colorado, swing state in the rocky mountain west, eight-point lead in iowa where both men launched their presidential campaigns. one thing to remember is that while president obama does better and better in the presidential race, you're seeing some evidence that democratic senate candidates are also doing better. two debates last night in critical races. 2 of the 10 toss-up senate races that will help determine whether or not democrats or republicans control the senate. in massachusetts, scott brown, the republican who rocked the administration by winning that senate seat formerly held by ted kennedy, debated elizabeth warren. the consumer advocate. that is a very tough debate. scott brown is keeping his distance away from.

in virginia you had a debate between two former governors, the democrat tim kaine who chaired the democratic national committee, the republican george allen who also had been a snort, lost that seat six years ago. that is a very tough race that had an interesting twist on the 47%, because there was a question from the moderator, david gregory of "meet the press," about whether tim kaine, the democrat, would consider a minimum income tax on those not now paying taxes. after tim kaine said yes, i'd consider him, allen, the republican, attacked him for that very idea. it shows how toxic the idea has become in the wake of that secret video that the 47% deserve to have their taxes go up. >> thank you, john. coming up on "power lunch," corporate america's new turn. forget the partnership. kill the enemy. we'll talk with one big name ceo who may be about to find himself in the middle of such a fight. but first, check out the british pound versus the dollar. simon should be reading this.

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welcome back to "power lunch." i'm seema mody with a market flash. expedia hitting an all-time high today, a bullish note from

deutsche bank, upgrading the online travel player to buy adding that its pe multiple is trading at a 22% discount to its rival priceline.com. expedia offers one of the most compelling risk/reward tradeoffs. now back over to simon. it looks like the new holy grail in american business might to be fight with competitors like never before. certainly we've noticed two high-profile cases in just the last 24 hours of one-time partners going from friends to enemies in a real short time. walmart doesn't like amazon's new app that allows customers physically in walmart stores to compare prices elsewhere an perhaps buy online instead. no coincidence then that we have the announcement that walmart will no longer sell amazon's kindle. apple and google. heavy criticism of apple for its homemade maps service that's locked into the new iphone.

tim cook seemingly desperate to remove the previously offered google maps from its new hardware. bob pittman knows technology and media. the former ceo of time warner enterprises, bob is now the ceo of clear channel's cc media and he joins us live from vegas where his big iheart radio music festival is under way. do you kneel apple could seriously harm your business as it now extends itself into internet services? i mean today it's maps, but tomorrow we hear the rumor it might be radio. >> i think it's -- i think the idea that it's winner-take-all is probably a crazy notion everywhere in american business. i think if you look at apple, there are plenty of things apple does that are good for us, things that they do for us that are bad for us. given the kind of platform we've got, we reached 237 million people every month. we reach more than they other media company in america.

more than apple does in america. we're pretty safe. >> what about the speed of change though? we know the speed of technology can be absolutely brutal and you see that in the part disruption of nokia and research inberlack. if apple and google become the technology through which we access parts of the world. >> i think there are a lot of other ways. you forgot to mention microsoft and the operating system which is still the biggest platform we've got in the world. i think there are others as well. . mobile guys are coming out with their own platforms. but i think at the end of the day everybody with a platform -- by the way, including us -- has to make sure we give the consumer what they want or our platform's not going to be very popular. so the idea that we can cram down bad stuff to consumers i think is sort of not very thoughtful notion that a lot of people put forward. >> mr. pittman, stay where you

are. we'll talk innovation, online radio again and the music festival in the next half-hour of "power lunch." for the moment, thank you. the space shuttle "endeavour" about to fly oints last journey through the state where it was made. that's next. and a real beer bust at a convenience store in the sunshine state. we'll show you how it all ended and we're analyzing the analysts on the docket today, calls on altria, conagra and microsoft. back in two. of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.

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the space shuttle "endeavour" making its final, final farewell. these are live pictures from the west coast. it is currently beginning to fly by the landmarks of california. we're very soon to see it next to the golden gate bridge in san francisco. then it will go on to the science museum coming ultimately to rest, right off the 110 in l.a. look at this iconic image for a moment. near daytona beach florida, an armed robber got more than he

bargained for. he came in with a knife trying to rob it. while he fought with one worker, another came from the other side armed with cans of beer. he threw them at the robber. he ran off. the would-en robber was arrested a short time later. the motto, never underestimate the power of a beer. >> you got it. thank you, simon, very much. >> it's time to do some animal cyst. jeff kilburg, you ready to go? we're going to start with citi upgrading altria to buy from neutral noting that management is "on the case" successfully addressing t ining the marlboro positioning win menthol. in terms of the stock performance, it's basically been up 12% over the last six months or so. >> i like this call. we've seen a recent pullback here but this is a great way to play the tobacco space. some of the biggest institutional investors are piled on here. so i like this.

>> moving on to ubs upgrading conagra from buy for to neutral noting the robust international growth story with lamb weston. shares up at $27.65. >> a week ago when chairman bernanke green lighted u.s. equities by qe3, this is a great way to play this inflags trade. i like it. at the end of the day you'll see these u.s. equities continue to move forward as inflation ryes. >> for those who don't know what conagra does -- near term we believe there is less pent-up demand than when windo-- year te microsoft stock is up 20% after being an underperformer for many

years. >> i like microsoft. you're right, it has hit a lid at $32. the ceo said this is going to be an emic year for microsoft. they have a really exciting product cycle coming out. i'm all in for the tablet. if it gets above $32, it could run up to $37 in a click. thank you very much, killer. we get to go back to the space shuttle which as simon mentioned was making its way down the coast of california. it is in the san francisco area. it's going to go bast the golden gate bridge. that is just astounding to me to see that. it's such a beautiful sight. it is amazing what the technology can do. that is going to be a wonderful feature to have in the science museum in downtown los angeles. >> it's spectacular. every american looking at that, that's just a beautiful picture. we should be very proud. >> indeed. we'll keep monitoring that. it is certainly worth as many looks as we can get at it. there's a big story out of

brooklyn today as well. the nets, jay-z, barbara streisand and more. they're all moving in. brian schactman is, too, he's on the case. they say that madison square garden is the world's most famous arena. the barclays center might be the coolest. from theherringbone court to the all-black seats. why msg and the knicks might be a little nervous. big news for the metals today as well. technicians having a field day. see what they're saying about what the charts may mean for prices. that's coming up next. e eye.

let's close out the week on the metal market. it's been one hell of a week of course for metal. we saw that in particular with the sort of comments we had -- sharon epperson, just tell us how we're closing out there. >> it has been a really volatile day but we are up on session about $8. we'll close around $1,777 an

ounce, very close to the highs we saw back in february. there is a lot to look ahead to the gold market. options expiration on tuesday which could exacerbate the volatility we've seen today. we're also watching what's happening in the silver market. it seemed to first be market that pulled back earlier today, and then recovered a little bit. south africa, another big point to watch. miners and labor issues impacting platinum. even gold got a bit of a bid today as we saw a strike with anglo gold going into effect. believe it or not, over the last three months it's actually been the gold miners that have outperformed the gold bullion etf. it may be something traders want to look at as we g into the end of the quarter and into the beginning of a new quarter. let's get a market flash. >> dow jones is reporting that time warner cable is near a deal to carry the nfl network. of course that could be a big

win for the company if this deal goes through. the stock up about 1%. back to you, simon. we're up 24 points on the dow. the volume lightly to explode in about 90 minutes as we hit the close. mary thompson is here with more. >> volume's already been big this morning. we're looking at 2 billion shares so far in the consolidated tape. that's well ahead what have we usually see at this time. markets holding on to some fairly steady gains today. big volume of course attributable to two things. we had the quadruple witch today as well as the rebalancing of some s&p indexes. that's going to cause a lot of activity as we head toward the close today so keep watch on that. that being said, the dow and nasdaq are on track for another weekly gain. s&p is a little bit of a push and pull. trading right about that level that would put it into positive territory. focused on home builders as well today. the home building index has hit a 4 1/2 year high. kb homes came in with a surprise profit for the past quarter. the company having its best day in -- since february of this

year. january of this year. up 16%. of course, dragging along some of its rivals with it. keep in mind that we're going to see more data on the housing sector out next week with pending home sales, as well as some prices on case schiller, as well as the fhfa. home depot of course one of the better performing stocks over the last year within the dow. in fact the second-best performer -- or contributor to the dow's gains over the last year, the first being ibm. we do want to point out that the transports continue to lag. today's no exception. we have a fairly broad-based rally but once again transports are not participating. >> what a phenomenal move on the home builders. breaking news now on one of the most iconic brands on wall street's history. kayla. >> simon, it's been four years since bank of america bought merrill lynch. one thing that executives have been toying with for at least recent months is changing the name of the investment bank. now this is a broad brand review that began in may and it

canvassed hundreds of bankers, both legacy merrill lynch and legacy bank of america, to decide whether to strip b of a's nak from bank of america/merrill lynch according to people familiar with the revau. this would have ban big win for thundering herd which three years ago fought tooth and nail to get that iconic bull back on their business cards. it would be a departure from the previous stance of executives who are keen to remind merrill limp lynch of who bought whom. they wanted to know whether having america in the i bank title was costing it business abroad. some said that was the case, the combined bank is the second largest in the u.s. by assets and it's also lost the top spot to jpmorgan. it is losing the top spot of largest u.s. bank employer. the new and improved b of a

brand is set to be released in 2013. >> let's be clear here, kayla. to have america in your tiftle, in your brand for the vast majority of the world is a huge asset, surely. >> it surely is. that was one of the other big arguments, was does it hurt more than it helps. of course it comes with a big balance sheet and it comes with this relatively strong economy based on what's going on in the rest of the world. might have had a little more traction maybe a couple of years ago but at least for now they seem to be sticking with it. >> kayla tausche with the latest on b of a. merrill lynch, rick santelli is track being the action. >> you know, considering what kind of week we had, just consider housing. you had a very powerful national association of home builders index at 40. existing home sales looking pretty darn powerful. seems like bottoming action is starting to take hold in housing. look what interest rates have done. granted today if you look at intraday chart, 10s just slipped

down to 1.75. down a basis point on the day. open up to a one-week chart, we cloelsed last week around 1.87. we're down a dozen basis points on a week that didn't have bad fundamentals. that's interesting, kind of the post tick-up after the fed statement. there isn't a lot going on with europe right now. the biggest news in europe according to many traders i talked to was that italy yesterday talking about maybe bigger deficits, smaller gdp. i looked at the 10-year in italy. it definitely crept up a little bit today but not huge. you don't feel the anxieties. it seems as though the rate drop on 10s and indeed in bunds is more getting back to where it was before some of the quantitative easing or bank of japan statement was read. bank back to bank of japan. if you look at the dollar/yen over about a month, we can clearly see that the dollar is moving back down towards that $78 level 77.5 was the six-month

which coincidentally happened to be on the day of the statement on the 13th. bob with us, bob pittman, ceo of cc media holdings and the brains behind the iheart radio music festival in las vegas. he's also former ceo of mtv networks, aol, six flags, century 21 and time warner ernt prices. i can't believe he's done that much in his short life but he has. he's back with us. he has a unique take on what's happening in social media and the entertainment world. good to see you again, bob. welcome back. >> thanks. >> let's talk first of all and pick up from where simon left off earlier. that's the competitive landscape out there. you have been extraordinary in your ability to innovate. how do you keep that going as the field becomes so much more crowded? >> well, think you don't look at the other people. what you look at is the consumer and you get laser focused on the consumer.

so many people look at competitors, they look in the rear-view mirror, they get paralyzed, they're afraid they're going to lose something by going for the future. ours is, look, if somebody can cannibalize us, let's cannibalize ourselves. we know what we do better what than anyone else. i think we probably look at consumers as strong as anyone else, if not stronger, and just keep ourselves laser focused there. if we do something for the consumer, things work out. iheart radio a year ago wasn't in existence a year ago. it's got a 50% brand awareness. it's come on strong. we were the fastest service ever, including facebook, and spotify and instagram, pandora, to reach 10 million registered users. we've got 50 million -- >> so who do you consider your competition right now? is it apple? is it google? you named some of those companies certainly that are out there but if you had to look at your one main competitor, who would it be? >> there's not one main competitor. when you got 237 million monthly

users, which is more than anyone else in the united states, including the broadcast networks, including in the u.s., facebook or google, we're sort of reaching everybody. so we both collaborate and we probably compete with almost everybody out there and i think our view is to try and focus on the opportunities we have to collaborate with everyone. but we're doing it in search of trying to deliver something to the consumer. my view is you either make, you buy, or you partner on everything you need. but what drives the need is not some idea we've dreamed up, but it's what the consumer's looking for and it is a solution to a consumer need. >> you mentioned the fact that the iheart music festival really was just coming in to its existence last year. you just mentioned something interesting about the fact that you either buy, or adapt to whatever the competitive landscape is. would you consider making acquisitions right now? and if so, what area would that be in? >> well, we bought thumb play, a

company that really gave us our technology team and the basis for the new iheart radio product which is primarily bringing radio stations to consumers no matter where they are. but also delivering a custom radio solution like a pandora. it is also deeply embedded into facebook so it is very social as well. and so for us, we don't sort of look to buy stuff. we look at what we need and then we sort of evaluate should we build it ourselves, should we buy somebody, should we partner with someone. in the case of social, we've marter inned with facebook. in the case of the product, we've bought thumb play. in the case of the other pieces of it, we made it ourselves. i think it is a daily activity -- >> you make it sound very easy but i know it is a competitive industry to say the least. tell me about the music festival that's under way in vegas this weekend. >> look, we've got everybody. last night i was rehearsals looking at pink and gwen stefani and no doubt. we've got pit bull.

we've god brad paisley. we're just loaded with stars, like we were last year. i think we've taken it up a level this year. it will be streamed on yahoo! and also streamed on xbox which are terrific partners of ours. we've got great sponsors. we did this whole promotion with chrysler dodge dart around the new dodge dart they've got. we took test drives around the country. we picked 12 winners from the test drives. they're going to win the iheart dart tomorrow. they have -- all 12 of them got keys. one of them is going -- when they turn on the key, it will start the car prpt car was customized by pit bull. they all get to meet pit bull. it is an idea bring our advertisers in, bring our consumers in, do something which really demonstrates the clearly channel can no things no one else can do. >> good luck, bob. thanks for joining us. >> thank you, appreciate it. listen up, everybody. cnbc has just received a copy of mitt romney's 2011 tax return. we're going to go through them

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i'm john harwood in washington. republican presidential candidate mitt romney has just now released details of his 2011 tax return and some returns going further back, although he didn't release the actual returns further back. for 2011, mitt romney now estimates he made $13 million earlier in the year. he said it would be higher, about $20 million. then he paid $1.9 million in federal taxes for an effective tax rate of 14%. what's interesting is that earlier in the year in august, in fact, had been asked whether he'd ever paid a lower effective federal tax rate than 13% which is what he paid in 2010. his rate would have been lower than that but his accountants

decided not to claim all of the $4 million in charitable deductions that he had made. that kept that effective rate at 14%. now to quell some of the demand for returns further back, they released statistics about 20 years of tax returns. said over that 20-year period mitt romney paid an average effective federal tax rate of $20 million, and never below 13%, simon. so this is an attempt by to close off one of the lines of arguments from democrats which is we don't know whether you paid taxes at all. they say that over 20 years that mitt romney owed federal taxes in every year. there were no years where he paid no federal taxes. >> remind us of where we are on this, john. the democrats had made a challenge that they wanted more detail. what was the deal that they offered? they had to give up -- if they dpaf up so much at the wouldn't ask for move. obviously 20 years doesn't have the detail within it that the democrats would ideally like in order to push back. >> well, i don't think the democrats are going to give up

pushing back no matter what releases. but this is an attempt to, in effect, get around or neutralize that demand. democrats had asked for ten years of returns. mitt romney is not going to release ten years of returns but he is having his accountants vouch for the rate that he paid over that period. >> how does it change the conversation, john, or does it? >> i don't think it does really, sue. i don't think this tells us much that we didn't know about mitt romney. now everybody's going to dig in to the actual details of the 2011 return which is going to be hundreds of pages. i have not been able to do that. i'm talking about the top line numbers now. we'll see whether there's anything especially interesting there. but i'm not sure we're going to learn much from 2011 that we didn't already learn from the 2010 returns and the previous fx disclosures he's made. >> as we move towards a position where obviously the presidential -- live presidential debates are going to take center stage. where does that now leave us on fact that obama has decided to fight part of this election

campaign controversially on the wealthiest and whether or not they paid tax and the fact that he can now stand up opposite romney and he can say, you've only 12%, 13% over 20 years. it is people like you that need to pay more tax. how does romney respond to that? >> well, it's not going to be easy for rochlmney. he's going to say i don't believe in raising taxes on anyone, that that's unwise to do in this economy. he said president obama in 2010 himself decided it was unwise to raise taxes given the economy was so vulnerable. mitt romney will throw that decision back in his face. but the more important development that happened this week, guys, was of course that video that was secretly recorded at the fund-raiser, and that combined with mitt romney's wealth and the tax rate he paid, democrats will make the argument that even those 47% that mitt romney says don't pay federal income tax may have paid a higher effective rate when you take into account all taxes that

mitt romney and mitt romney's going to have to have an answer for that. >> but john, the timing of it then, to your point. the fact that it certainly does not allow that video gaffe to die. it actually might resurrect it. it might bring it -- make it even a bigger talker over the weekend news shows. i'm surprised at the timing. or do you disagree with that? >> i don't really hink it is going to change it, sue, because we already knew. this return is coming in with a lower income. instead of $21 million, we're saying about $14 million for mitt romney. either way, it is a huge number. everybody knows that mitt romney's very rich. the question's going to be not what his effective tax rate was in a way that we just now learned. we already knew that he paid a low effective tax rate, in part because of carried interest and the other breaks that people get for investment income. the question's going to be how well he can diffuse this building line of attack that's caused many republicans to turn away from him based on the 47%

video. >> john harwood, thank you so much. i'm sure this is a story that street signs is going to be following. mandy's here to tell us about what else is on the agenda. >> lots of things, sue. of course we've been looking at the iphone 5 lines all day. but what do they really tell us about sales going forward? we've got a top analyst who's crunched the numbers and we've got them as well. second best summer in three decades. what about the fall though? we'll ask a guy that manages $260 billion. yes, billion, with a "b." and one of the things that keep hedge fund giants ray dalio up at night and whether it affects your money. >> we will see you at 2:00, mandy. there is a big corporate fight involving the enough iphone. we are call it mapple. i love you, james. don't you love me? i'm a robot. i know. i know you're a robot!

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cnbc is looking for you to vote on who you think had the biggest ego this week. i don't know. who is it? is it between and his 47% comments, howard schultz and his friendmys keurig.

cast your vote on cnbc's facebook page. it's time for the power rundown. cn cnbc.com's john carney is with us. jeff kilburg. what do you think, does this iphone complaint have legs or not? >> i think it does have legs. think apple needs do something about it very quickly. it is on the front page of the "wall street journal." there's lots of complaints about it. there's one thing they could do and it is go out and buy a service that will provide them with the information they are lacking. something like four square which i have to say full disclosure is owned by friends of mine. but i think it is a great app. i think it would make a great addition to apple's maps. i think they should just go out and scoop it up. >> so they should make an acquisition. jeff, what do you think? >> i think it is a 50% fail in the big picture. i think the women may be upset about the maps but guys, just ask us, we don't need directions. >> oh, that was perfect. as you know, cnbc's just received details of mr. romney's

tax returns. your initial reaction, john? does this help him or hurt him? >> i think it helps to get this out of the way. i think a lot of people are overplaying romney being behind in the polls right now. remember, we're -- we haven't even had one debate. we're still over a month away from election day. a lot of americans haven't even started paying attention yet. i think getting this out of the way now is a good idea for romney. >> jeff? >> i think this was very strategic of the campaign to crush that 47% youtube tape they had out there. in the big picture, the paramount issue is the october 3rd debate. romney better bring his "a" game because he has a formidable opponent when it comes to talking. >> he does. united health care taking the place of kraft. will this be more reflective of the way the economy is going? >> one thing it does is it makes the dow jones industrial average more leveraged to obama care.

if the individual mandate gets hit, all the insurers get hit which means that if romney gets elected, succeeds in turning back the individual mandate, we could have the dow actually shrink because health care stocks get so hammered. united health would be one of those. >> jeff? >> i like this as a investor perspective. little shout out to the quad cities. i think united health care is a great addition. i think it is really going to help investors get o know the companies so we shall see the stock price move up. >> it also definitely helps the dow better reflect the broader economy which is always good. >> indeed it is. gentlemen, thank you very much. sue herera, in the next hour of cnbc, why you may want to kick it old school when it comes to investing in social media and media stocks. oh, yes, street signs stylin' next.

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the polling in the swing states is not very advantageous. as far as markets are concerned, up 30 at the moment. it is an important last hour of trading because you have quadruple witching and a rebalancing of the s&p. quite a lot of volume is expected. apart from that, also a lot of optimism at the way in which the market seems to be able to continue to melt higher. we are now 2 1/2 weeks of course away from the start of earnings season with alcoa on the 9th. >> jeff kilburg, as we wind up a great week -- thank you so much -- you're looking at the oil market which has had a spectacularly volatile week. now we are getting a pop. >> it was like the wild, wild west. we saw that high-frequency trading situation earlier. i know simon was suspect about my call of bouncing, but it printed $90, now back up to